Nike to sell on Instagram, following Amazon move
Nike has announced that it will start selling sneakers on Instagram, as it looks to shake up its online presence.
In a call last week with analysts, in which it confirmed plans to officially sell on Amazon, the sportswear and footwear company said it will also take a new, commerce-focused approach to the photo-sharing platform.
Nike did not explain exactly how customers will be able to purchase items through Instagram.
But last year the Facebook-owned app launched a new shopping feature called Tap to View, which 20 US-based brands and retailers, including Kate Spade and Warby Parker, have trialled so far.
Using Tap to View, businesses can tag up to five products, including prices, in a post. Consumers can access product information and click a link to the product page for purchase.
Instagram has become the social marketing platform of choice for retailers, thanks to its large user base and visual focus.
And Nike has far more Instagram followers than its competitors, according to Raymond James analyst Cedric Lecasble.
This, combined with Nike’s move to sell on Amazon, makes it a “top pick” in the consumer sector, according to the financial services firm.
Nike CEO Mark Parker told analysts last week that sales on Amazon are in the “early stages” […] “but we really look forward to evaluating the results.”
The company will initially sell a limited range of footwear, apparel and accessories on Amazon, as it looks to combat counterfeiters and unsolicited third-party sales on the platform.
According to BizVibe, the shares of many North American sportswear companies and retailers dropped quickly following the announcement.
Foot Locker fell roughly 11 per cent, Dick’s Sporting Goods fell by more than 9 per cent, and Finish Line fell 5.9 per cent, while Nike rose 2 per cent to US$59.59, and shares of Amazon rose by US$9.64 to US$1,002.23.